Tuesday May Have Defined Inflection Points on the Index Charts

Tuesday May Have Defined Inflection Points on the Index Charts

The DJIA made it back above the May/April low level; the S&P 500 Index bounced off a similar level and its 200 day moving average; the NASDAQ Composite managed to retake its 50 day moving average; and the Russell 2000…

Volume Improves...Today

Volume Improves…Today

The short rally earlier in the month was accompanied by very weak volume. Today’s move, while at this point a one day event, saw a jump in volume 10% above the 50 day moving average of volume.

Bullish Morningstar Patterns on Some Problematic Charts

Bullish Morningstar Patterns on Some Problematic Charts

We’re all familiar with the morningstar candle pattern. It is a three day bullish reversal pattern formed by a large dark down candle, followed by a narrow opening and closing range “doji” candle, and completed by a large white up…

Positive McClellan Oscillator Signal

Positive McClellan Oscillator Signal

The McClellan Oscillator measures breath by subtracting the 39-day exponential moving average of NYSE net advances from the 19-day exponential moving average of NYSE net advances. Over the last five months the indicator has touched or nearly touched the -60…

Utilities: A Port in the Storm

Utilities: A Port in the Storm

The utilities were the outperforming sector in today’s decidedly dismal market. The Utilities Select Sector SPDR (XLU) was up 1.2% and formed what could be a morning star reversal pattern on its daily chart. This three day pattern consists of…

Damaged Index Charts

Damaged Index Charts

It was not a good week for stocks with the S&P 500 index down 2.2% and the DJIA pulling back 2.8%, the NASDAQ Composite off by 2.3%, and the greatest damage being done in the diverging Russell 2000 which dropped…

Major Index Charts

Major Index Charts

The action on the major index charts yesterday was significant with the S&P 500 index and the DJIA pulling back to their 200 day moving averages, the NASDAQ Composite dropping below its June high, and the Russell 2000 forming a…

Keep Calm and Consolidate On

Keep Calm and Consolidate On

If you step back from the day-to-day perturbations of the broader market and look to the weekly timeframe, the picture often becomes less turbulent and more placid. What we have been seeing for most of this year is a classic…

S&P 500 - Percent of Stocks Above Their 50 DMA

S&P 500 – Percent of Stocks Above Their 50 DMA

The number of stocks in the S&P 500 that are above their 50 day moving average has been declining since the beginning of the year, in clear divergence to the index. Breadth indications have been problematic during the most recent…

NASDAQ - A/D Fade

NASDAQ – A/D Fade

This chart of the NASDAQ Composite is overlaid with a cumulative advance/decline line, and the individual NSADAQ advances and declines are at the bottom with five day moving averages. The divergence in the number advancing versus declining shares can be…